Research In Motion outdid analyst expectations for the fourth quarter as profits at the BlackBerry maker more than doubled to US$412.5 million and revenues came in slightly ahead of already bullish estimates.

The Waterloo. Ont.-based company (TSX: RIM), now by far Canada's most valuable technology company on the strength of its spectacular growth, also released sales estimates for the current quarter that were ahead of analyst estimates.

In heavy after-hours trading of the company's stock, RIM shares increased by more than four per cent after the announcement with more than nine million shares exchanged.

RIM, which reports in U.S. currency, said Wednesday its net profits for the period ended March 1 were worth 72 cents per diluted share, up from $187.4 million, or 33 cents per share, a year ago.

It also expects profit will be even higher in the first quarter of its 2009 fiscal year, providing an estimated range of 82 to 86 cents per share, more than double the 39 cents per share it earned in the comparable period last year.

Analysts had predicted earnings in the range of 69 to 70 cents per diluted share for the fourth quarter and 52 cents to 93 cents for the first quarter, according to Thomson Financial.

Revenue at the company, which reports in U.S. dollars, jumped to US$1.88 billion, up from $930.4 million. That was divided 81 per cent from handhelds, 14 per cent for service, three per cent for software and the rest in "other revenue."

About 2.18 million new subscribers were added in the quarter, which included holiday sales, while 4.4 million smart phones were shipped.

RIM shares ended the TSX trading session down C$2.47, or two per cent, at $117.63 after rising as much as $2.12 earlier. On Nasdaq, the shares ended regular trading down $1.69 to US$115.79, but rose $4.91 in after-hours trading.

"We continue to diversify our customer base and at the end of the year approximately 38 per cent of the BlackBerry subscriber base were non-enterprise and well over half the net new subscriber account additions in the quarter came from non-enterprise customers," co-CEO Jim Balsillie said in a conference call.

He added that international carriers are lowering their price plans for the BlackBerry service to increase consumer adoption.

"We now have dozens of carriers in many geographies offering sub-$20 per month BlackBerry service plans and are working with our partners to support innovative introductory plans for the consumer market."

The broader campaign includes adding pre-paid BlackBerry accounts to some carriers, Balsillie said.

The strong results come despite recent speculation among investors that massive layoffs in the U.S. financial sector could bite into RIM's subscriber count and future sales, although the company has indicated that its reliance on that market segment is fallen over the year.

The BlackBerry, affectionately referred to as the "CrackBerry" by users who say it has addictive properties and rely on it for e-mail communication and Internet access, will probably overcome the Wall Street layoffs, said Duncan Stewart, president of Duncan Stewart Asset Management, a Toronto-based money manager .

"Everybody says if you're a broker who's just been fired, you may give up your Porsche, you may give up your summer home in the Hamptons, but you are not going to give up your BlackBerry because it's your lifeline to your existing clients," he said.

"People who work as brokers, even when they don't have jobs, call up their best clients because it's how they stay in the flow."

For the full year, RIM said revenue was $6.01 billion, up 98 per cent from $3.04 billion in the previous fiscal year.

The company also showed little signs of worrying about the a talk of a U.S. recession in its first-quarter guidance.

New subscribers are expected to grow by another 2.2 million in the period ended May 31 while revenues will likely fall between $2.23 billion and $2.3 billion, it said.

One analyst questioned the company's outlook and asked if recent growth acceleration was heading towards a slowdown.

"With this faster growth we are always heading into new situations and there's an element of uncertainty," Balsillie said.

"We're heading to lots of new ground and we could be pleasantly surprised on these things, but that's our best level of guidance at this time."

Apple Inc. (Nasdaq: AAPL) has dealt RIM its greatest challenge by working to steal away market share with the touch-screen iPhone device, touted as a mobile phone, Internet browser, e-mail device and music player in one.

On Monday, pictures leaked onto technology website Silicon Alley Insider of what's purported to be the prototype of RIM's response to the iPhone – the Blackberry 9000.

The device doesn't use touch-screen technology, but its metallic-edged appearance and menu screen mimic the iPhone.

"Look at those pics and tell us RIM CEO Jim Balsillie didn't slap an iPhone down in front of his designers and say 'Give me something exactly like this,"' wrote the website's commentator Henry Blodget, a former high-profile Wall Street technology analyst.

"We're glad to see RIM respond to the iPhone, even if it means we may actually have a choice to make when we finally trade in our battered Curve."

RIM's quarterly results didn't offer any clues as to whether the leaked images were legit, nor did it include any new product announcements.

Instead of slowing BlackBerry sales, Apple has only boosted the profile of the multi-purpose mobile device, said Peter Misek of Canaccord Adams.

"What you're seeing is a major market shift change from cellphones to smart phones and it's bearing itself out in the carriers, who are actually (saying that) high-end cell phone (sales) are weak."

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